Four of the five largest private equity funds are in Asia

At a time when a record number of private equity (PE) funds are seeking capital from investors around the world, Asia is emerging as a hotbed of PE activity, and this is reflected from the fact that three of the five largest funds on the road to raise capital at the end of first quarter this year focus on this continent.

Again, of the five largest PE funds in the market, four of these are from Asia.

The four that have their managers from Asia are Japan’s Softbank’s Softbank Vision Fund with a target size of $100 billion, China State-Owned Capital Venture Investment Fund with a target size of $29 billion (CNY200 billion), Sino-Singapore (Chongqing) Connectivity Private Equity Fund at $100 billion and China Ministry of Finance’s $100 billion The China Internet Investment Fund, according to data released by Preqin last week.

The fifth and the only one from outside Asia is Apollo Investment Fund IX at $20 billion.

The Softbank Vision Fund is the largest vehicle in market with its target of $100 billion, which if it reaches the expected close, would be the biggest private equity fund of all time.

According to Preqin, the data in part, also reflects the participation of state-owned entities, particularly from China, raising large funds.

“Asia has overtaken Europe as the second most targeted region for private equity investment, representing a fifth of funds in market and a quarter of the aggregate capital targeted, above the 17 per cent and 16 per cent of funds in market and capital targeted by Europe-focused vehicles respectively,” the report said.